Highlights from the week of September 18 – September 24, 2026.

Key takeawaysThis is a recalibration, not an inflation crackdown. The Fed is taking back last year’s insurance cuts because the economy can stand on its own. Rates can’t fix a supply problem. Higher borrowing costs won’t build power capacity, produce advanced chips, or reverse geopolitical disruptions, limiting the benefit of additional hikes. Higher yields create a better bond backdrop. With the economy able to absorb tighter policy and markets already pricing in substantial adjustment, measured duration can offer attractive income and upside if long-term yields fall.

Market declines can be unsettling, but not every uncomfortable moment calls for action.

As the market broadens beyond the AI trade, shifting Fed signals and lofty earnings expectations demand more active judgment.

New Fed Chair Kevin Warsh appears ready to give markets fewer signals. That may give the Fed more flexibility, but it also gives every data point more power to move markets.

The back half of 2026 may hinge on six themes: AI spending, uneven growth, labor supply, sticky inflation, uneasy central banks, and volatile bond markets.

Government-backed mortgage bonds have outperformed during some of the market’s worst quarters. Here’s how they work and what their track record has historically meant for investors seeking diversification.

As companies look to bond markets to fund AI investment, the credit impact is showing up in more selective ways, creating opportunities for active investors.

Markets are being tested on several fronts at once. But the important question is how these shocks travel—through inflation, monetary policy, funding conditions, or issuer fundamentals. That’s where resilience begins to diverge.

Securitized credit is a popular, if complex, fixed income allocation. Here’s where to begin.